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DHARWAD MILK UNION (A unit of KMF)

EXECUTIVE SUMMARY
KMF, which began processing milk in 1965 with an initial capacity of 50,000 liters per day, was inaugurated on 23.1.1965 by late Sri.Lal Bahadur shastriji, the honorable Prime Minister India. Later the capacity was enhanced to 3.50lakh liters per day. Steady demand for quality milk, led the organization to break ground on its newest Mega Dairy, and commissioned during the year 2000, which is a modern & fully automated dairy plant with a capacity of 6 lakh liters per day, is expandable to 10 lakh liters per day. The operation in the dairy are fully computerized and each operation is atomized with controls for standardization, temperature and flow control, pasteurization system. This system gathers an distributes that for production, maintenance, break down, quality along with utility and water supply system measurements for analysis and monitoring. The union KMF in Dharwad was established in the year 1986 under the operation flood 2 and 3. the union also took over in 1988 the milk products factory with a drying capacity 2.10 lakh liters per day, earlier established by Karnataka milk products limited (Govt undertaking) The various private brands have been trying to give a really tough a Competition by giving the agents high trade margins. Where the organization is playing the important role in developing the economic aviability of the villages. The union is selling different milk variants such as toned, double toned full cream and homogenized cow milk. Other products produced and sold are curds, butter, ghee, pedha, paneer flavored milk and butter milk.

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DHARWAD MILK UNION (A unit of KMF)


INTRODUCTION TO THE STUDY:A project on financial study on the topic Ratio analysis was conducted in Dharwad Milk Union (DMU) to know how the management principles are laid down practically. The study enabled us to understand the company environment and co-relate it to our classroom learning. It gave us practical knowledge. All the departments were observed and assessed as to how the management principles are laid down.

OBJECTIVES:The objectives of the study were: To examine the establishment, organization and operational dimensions of the D.M.U. To know the liquidity position of the firm To examine the management performance in components of ratio analysis. To know the how actually finance dept functions. To test firm's efficiency in utilization of its assets and resources.

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DHARWAD MILK UNION (A unit of KMF)

INDUSTRY PROFILE

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DHARWAD MILK UNION (A unit of KMF)

INTRODUCTION TO DAIRY INDUSTRY


DAIRY INDUSTRY IN INDIA
Dairy enterprise is an important occupation of farmer. In India nearly 64% of the people depend on agriculture. It is the backbone of India. Dairy is linked with agriculture industry to a large extent. Animal husbandry in India is an essential part husbandry. It is mainly a rural occupation closely associated with agriculture. In India, dairying has being practiced as rural cottage industries since the remote past. Semi-commercial dairying started with the 3 establishment of military dairy farms and cooperative milk unions trough out the country towards the end of the 19 century. The Indian dairy industry has made rapid progress since independence. A large number modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottle milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. HISTORY OF INDIAN MILK MARKET Beginning in organized milk handling was made in India with the establishment of Military dairy farms. Handling of milk in co-operative milk unions established all over the country on a small scale in the early stages. Long distance refrigerated rail-transport of milk from Anand to Bombay (Mumbai) 1945.Pasteurization and bottling of milk on large scale KLEs college of Business Administration 4

DHARWAD MILK UNION (A unit of KMF)


for organized distribution was started at Aarey (1950), Calcutta (Haringhata 1959), Delhi (1959), Madras (1963) e.t.c. Establishment of milk plants under five year plans for dairy development all over India.

NATIONAL DARIY DEVELOMENT BOARD:


HISTORY:The NDDB was founded to replace exploitation with empowerment, tradition with Modernity, Stagnation with growth, transforming dairy into and instrument for the development of Indian's rural people. The NDDB was established in 1965; the board is registered under the Societies Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India - the Lal Bhahaddur Shastri who to extend the success of the Kaira Co-operative Milk producers union (AMUL ) TO OTHER PARTS OF India. Dr. Vergese Kurien was the founder chairman. The success combined the wisdom & energy of farmers with professional management to successful capture liquid milk and milk product markets while supporting farmer's investment with inputs and services. THE GROWTH OF NDDB: NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of gross roots milk producers. The mission archived helped to launce "Operation Flood", a program extending over 26 years and with the help of World Bank Loan India become the world's largest milk producing country. As per March 2001 India's 96000 Dairy Cooperative are integrated thorough a three Tier Ccoperative structure. The Anand pattern which is owned by more than 10 million farmers procures an average of 1605 million liters of milk everyday. The milk is processed and marketed by 170 milk producers co-operative unions which, in turn own 15 state co-operative milk marketing federation. Since its establishment the dairy development board has planned and KLEs college of Business Administration 5

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spearheaded India's Dairy programmer by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. OBJECTIVES OF NDDB: To sponsor, promote, manage, acquire, construct or control any plant or To make information available on request to technical services to increase To prepare initial feasibility studies of dairying and other dairy related To undertake research and development programs related to production To provide assistance for exchange of information to other international work, which promote projects of general public utility relation to dairying. production of Milk. projects and undertake subsequent designing planning and start up those projects. and marketing of milk and milk products. agencies. SERVICES RENDERED BY NDDB:NDDB provide the following services. Planning dairy and rural development projects. Organization of farmer co-operative societies. Setting up of dairy and cattle feed plants. Manpower planning and training. Applied research and development. Implementation of milk production enchantment program.

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DHARWAD MILK UNION (A unit of KMF)

COMPANY PROFILE

DMU:Dharwad Milk Union (DMU) came into existence on 3-3-1986. DMU is a

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DHARWAD MILK UNION (A unit of KMF)


government under taking co-operative society.

ESTABLISHMENT :The DMU is Co-operative society among the 13th establishment, under KMF. It is located in a spacious of 25 acres of land, located in Lukumanhalli Industrial Area.

NATURE OF BUSINESS CARRIED:Procuring and marketing of milk production and sale of milk products.

VISION OF THE DMU: Cleanliness Total quality maintenance Discipline Co-operation Transparency

DMU MISSION STATEMENT:DMU are committed to offering quality products that provide best value for money.

QUALITY POLICY OF DMU:To ensure pure, hygienic milk and milk products through continuous improvement of quality standards.

OWNERSHIP PATTERN :- DMU is one of the unit of the Kmf and runs under
the Co-operative Institutions such as District Co-operative society.(DCS) National Dairy Development Board

HISTORY OF DMU:-

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DHARWAD MILK UNION (A unit of KMF)


A group of experienced officers appointed by the Karnataka milk federation surveyed to whole of Dharwad districts further they found there was a need for milk dairy and benefits they get from milk dairy. Seeing the over whelming response and untapped resources and the huge merit the federation decided to set up the milk union in 1984 known as the Dharwad co-operative district milk societies union limited . Further in 1988 Raipur dairy and chilling centre set up in 1968 also came under the union 1989, the training centre which was controlled by shift KMF came under DMU. The shift DMU was Rs. 7 crore projects of which Govt has Rs.2 crore of share capital at the authorized capital of DMU is Rs.5 crore. DMU it found 551 milk producers co-operative societies in Dharwad, Gadag, Haveri and Uttar Kannada Districts. The production capacity of DMU is 2 lakh liters of milk per day and also has the capacity to produce 12 tonnes of milk powder, 10 tonnes of Butter, 6 tonnes of Ghee per day. DMU is connecting 17000 liters of milk per day from its societies and sales, 60,000 liters of milk per day and the remaining milk is used for producing milk products. FUNCTIONS OF DHARWD MILK UNION: The main function of DMU is to procure milk from villages and pay them the right price. To educate the villagers about milk and its quality. To make Nandini as a part of daily life. To provide good quality of cattle field, fodder, veterinary properly in an efficient manner. To see that the DCSs are carrying out their activities properly and in an efficient manner. To see that the milk is brought from DCSs to the chilling centers in the KLEs college of Business Administration 9

DHARWAD MILK UNION (A unit of KMF)


prescribed time. To look the account of DCSs supervises the purchase process and market the milk and milk products.

OBJECTIVES OF DMU: Providing hygienic and good quality of milk to the consumers. To build the economic strength of the milk products in villages. To eliminate middlemens in the business so that the milk products receive there appropriate share of bread. To educate the villagers about the adulteration of milk and its harmful effect on the body. To see that every citizen becomes healthy by consuming good quality of milk.

COMPANY PROFILE DMU


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NAME OF THE COMPANY ESTABLISHED FOUNDER ADDRESS E-mail PROPRITERSHIP Nature of Business TOTAL AREA AUTHROIZED CAPITAL SHARE CAPITAL Plant Capacity DMU 1986 Dr.KURIAN Dharwad Co-operative society milk union limited lukumanhalli industrial area , Dharwad-580004 dharwarnani@satyam.in Govt under taking Co-operative society Pursuing & Marketing of milk production and sale of milk products. 25 acres 5Crore. 3Crore approx. 2Lakhs liters per/day Milk powder Butter Milk Chilling Centers Ghee And Gadag Haveri Hirekerur Naragund Ron Sirsi Karawar Packing Unit 12 Tons / Day 6 Tons / Day 6 Tons / Day 20,000 LPD 20,000 LPD 20,000 LPD 8,000 LPD 10,000 LPD 20,000 LPD

Capacity

Kumta 10,000 LPD The milk in Bulk is sent packing & Distribution at Karwar which suppliers the need of Karwar, Gokarna, Honnavar, Bhatkal, Murdeshwar & Goa. Collection of Milk 95,000 LPD Sale of Milk 85,000 LPD Dharwad, Haveri, Gadag, Uttar Kannada District Basavarj Arabgonnda K. Ramchandra Bhatta Elected Members - 8 Ex-Officers -5 -3 Govt. 305 Workers Nandini

Presence value of Activity Area of Operation CHAIRMAN Managing director Board of Directors

Total Workers Brand Name

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Products Milks Toned milk, Full Cream Milk, Standard milk, Shubham Milk, Homogenized Milk Milk Products Butter, Ghee, Curd, Lassi, Panner, Milk Powder, Khova, Gulab Jamoon Co-operative societies at Village 480 level HEAD OFFICE AWARDS Bangalore Energy conservation award -1995 Best Hygienic Dairy-2000 Best Co-operative union in North Karnataka-2004

ORGANIZATION STRUCTURE

President

Director (Govt)

Director (Govt)

Director (DCS)

Director (NDDB)

Director (Society) 12

KLEs college of Business Administration MANAGING DIRECTOR

DHARWAD MILK UNION (A unit of KMF)

Procurement & Input Dept

Production & Process Dept

Marketing Dept

Administration Dept

Finance Dept

Quality Control

Stores & finished goods dept

Purchase Dept

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DEPARTMENTATION
PRODUCTION AND PROCESS

PRODUCTION & PROCESS DEPARTMENT :Processes and methods employed in transformation of tangible inputs like raw materials, semi finished goods or subassemblies and intangible inputs like ideas, information, and services.
RAW MATERIALS PROCESS FINISHED

Production is converting raw materials to finished products. It involves a number of factors to be able to produce the goods and services that cater to our needs. Production KLEs college of Business Administration 14

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means the development and creation of goods and services using resources to stimulate exchange. It is the physical output of a manufacturing or service company. Production involves 3 processes raw materials, work in progress and finished goods.

DUTIES AND RESPONSIBILITIES OF DEPUTY NANAGER (DAIRY) OF PRODUCTION:


Management and supervision of the total plant. He is in charge of the entire dairy activities. Monitoring the pre-pack and loading of milk. Administrative head of employees working in the dairy.

DUTIES AND RESPONSIBILITES OF TECHNICAL OFFICER OF PRODUCTION DEPT:


To ensure availability of machines. To ensure proper working of machines. To regularly check the machines. To ensure proper maintenance of the machines.

PROCESS OF PRODUCTION:
Production process has the following work flow model DCS

Fresh Liquid Milk

Sample Testing

Fat and SNF

Chilling

Storing

Pasteurization 15

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Storing

Homogenization

Separation

Packing

Dispatching

Production department is the main department where in the raw material is converted into finished products. The quality of the product is also dependent on the production procedure. The department is well equipped and has various types of highly sophisticated machines imported from Sweden and Denmark. Once the milk is received from the P & I department it is first weighed with the help of weighing bowl. The FAT and SNF content of each sample of milk is accessed, the cow and buffalos milk are separately received and sent to the production section trough two different stainless steel pipes. Later the raw milk is passed through plate chiller of variable capacity where it is cooled up to 4-5 degrees Celsius. This coaled raw material is further stored in a silo of 30,000 liters capacity.

THE PRODUCTION PROCEDURE AT DHAMUL IS DONE UNDER DIFFERENT STAGES. THE STAGES ARE AS FOLLOWS:
1. COLLECTION OF MILK: In this stage the milk is brought from various district co-operative societies (DSC) to the main dairy in a can of 40 liters capacity in tempos or in any other vehicles. The cans marked with two differentiate between the cow and the buffalo milk. Once the KLEs college of Business Administration 16

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milk is brought to the main dairy it undergoes into the following process: 2. UNLOADING: The cans were unloaded is called as dock station. The cans are unloaded from the vans manually. 3. ORGANOLEPTIC TEST: This test is carried out by a person manually without using any machines but using his sense organs like nose and hence it is called as organoleptic test. This test is conducted before the cans are weighed .In this test various sub-tests are conducted like: a. SMELLING (ODOUR) TEST: A man at dock station or platform checks the acidic nature of milk by Smelling or tasting the raw milk. If the tasted milk has bad odors then the dairy will pay lower rate to such society members than the normal rate. b. EXTRANEOUS-MATTER APPERANCES: In this test the raw milk is undergone into the test, which is conducted by the chemist. The chemist checks for two aspects mainly whether the milk is contaminated or not and the milk is in liquid form or curd form. He also checks for any extraneous matters like dust, flies etc. which lead to spoilage of milk. c).ACIDIC TEST: As the payment to the suppliers or DSC depends mainly on FAT & SNF content in the raw milk. The supplier may add sugar to the milk so as to increase the FAT & SNF content. Hence to avoid this adulteration sugar test is done. Its procedure is 10ml of milk is shaken in a test tube 71ml of hydrochloric acid. Few crystals of resorcinol are mixed to it. The solution is shaken well and heated for five minutes. If solution turns organ color it is demanded that sugar is mixed to it. 4. STORAGE OF CHILLED MILK: Once all the tests are over, the milk is allowed to store in the SILOS (storage tank). So as to maintain its cold level of 4 degree Celsius. The unions having 7 storage tanks , 3 KLEs college of Business Administration 17

DHARWAD MILK UNION (A unit of KMF)


tanks are vertical with 30000 litters capacity each and the remaining 4 are horizontal among which 2 are having the capacity of 10000 litters each and other 2 of 15000 litters each. After chilling the milk is passed trough pasteurizer for pasteurization. 5. PURPOSE OF CHILLING: This is done to avoid the growth of micro-organisms, which are responsible for spoilage of milk and bitter taste the milk, which is stored in silos, is pumped through pipeline to the balance tank, which helps to maintain the steady speed flow of the milk in the pasteurization machine. 6. PASTEURIZATION: This step of production includes heating every practical of milk at 72 degree Celsius in 15 seconds and it cold in less then 4 degree Celsius. When it is passing through pasteurization the cream is removed depending on the quality of the milk required (Standardization)

7.

PURPOSE OF PASTEURIZATION:-

Pasteurization is a process where milk is heated to high temperature and cooled instantly, to destroy any microorganism. The pasteurized milk will stored in Pasteurized milk thermal tanks and then sent to pre-packing section. Packing is done in 500ml and 1000ml and stored in cold storage at 7 degree. 8. PACKING: Once the pasteurization closed is conducted the next step is to pack the milk. The packing is done by the machine of fluid goods and were as it is done manually in case of solid goods like pedha. The machine packs the raw milk in two sizes that is 500ml and 1000ml pouches. These machines automatic with a capacity of packing 10000 to 14000 pouches per hour. The speed can be even altered according to suitability .These machines are used to pack all different types of milk in plastic bags. These plastics are polythene bags required for packing milk is bought from Bangalore. 9. STORAGE: KLEs college of Business Administration 18

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The last but not the process is the whole of production process is storage. The milk packed in 500ml and 1000ml pouches are arranged in the crates. Each cater contain 10 liters of milk. This caters are stored in cold room which has a temperature of about 5 degree Celsius.

DMU PRODUCES THE FOLLOWING PRODUCTS :

TONED MILK Karnatakas the most favorite milk. Nandini toned fresh and pure milk containing 3.1% FAT and 8.5% SNF, Available in 500ml and 1 liter packs.

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CURD Nandini curd made from pure milk, Its thick delicious giving you all the Goodness of homemade curds. Available in 200 Gms and 500 Gms packets.

BUTTER Rich, smooth and delicious. Nandini butter is made up of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cow's milk helps to makes any preparation a delicious treat. Available in 100 Gms (salted), 200 Gms and 500gms cartons both salted and unsalted.

GHEE A state of purity, Nandini ghee made from pure butter. It is fresh and pure with a delicious flavor, hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life 6 months at surrounding temperature. It is available in 200ml, 500 ml, and 1000 ml sachets. 5 liters tin and 15 kgs tins.

HOMOGENIZED TONED MILK KLEs college of Business Administration 20

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Nandini homogenized milk is pure milk. Which is homogenized and pasteurized Consistent right through, it gives us more cups of tea or coffee and is easily Digestible. Available in 500ml packs.

SHUBHAM Buffalo's milk, is 100% pure processed and packed hygienically, this milk has 4.1%fat and 9%snf. Available in both 500ml and l liters and also Available in 5 liters packs For marriages, and other functions.

FULL CREAM MILK Full cream, milk containing 6% fat And 9% (SNF). Rich, creamier tastier milk, ideal for preparing home-made sweet & savories. Available in 500ml and l liters packs.

PEDHA No matter what you are collaborating made from pure milk, Nandini pedha KLEs college of Business Administration 21

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is a delicious treat for the family. It will be store at room temperature approximately 7days. Available in 250gms pack containing 10 pieces each.

PANEER If there is excess of milk, then Paneer is been made. The milk is heated to 900 for 15-20 minutes. Glacial acetic acid is added to milk, and then milk is Strained through fine muslin cloth. The solid portion is retained and is put in water and then it is put in chilled water and left overnight. Later it is packed and stored in cold storage.

BADAM POWDER A delicious beverage with ahot or cold milk. It can be used for kheer, kesaribath, Desserts or icecream. Its the goodness of badam mixed with almond edible starch, saffron, skimmed milk powder and cane sugar to give us the ideal badam delight.

MILK POWDER Enjoy the taste of pure milk, Skimmed KLEs college of Business Administration 22

DHARWAD MILK UNION (A unit of KMF)


milk powder made form pure milk, Processed and packed hygienically. Available in 100gms, 200mgs, 500gms, kg & 25kg Pack.

KHOVA Khova is prepared out of fresh milk. It is an ideal base to prepare delicious sweets at home like pedha, Gulab Jamoon, Kalakand, Burfi, gajar Halwa and the like. Nandini Khova gives you a high nutritive value with large quantities of muscle building proteins, bone forming minerals and energy giving fat and lactose.

CONCEPT OF UNIT (ULTRA HIGH TEMP) MILK MARKETING: In order to meet the requirement of different segment of consumers and their demands for more convenience, KMF introduced Tetra- fino packing of milk with variants in the market. During the process of UHT, milk is subjected to temperature of 137 degree Celsius grade for 4 seconds and cooled instantly which remains all the vitamins and nutritional value of milk providing 0 bacteria product which needs no boiling. The milk is packed in 6 layer tamper proofed tetra-pack packaging which prevents the milk from spoiling due to the sunlight, bacteria, germs and oxygen. Thus ensuring freshness and purity of milk is retained when packed. The milk can be stored without refrigeration for 60 days in fino-packing and 120 days in brik packaging. PROCESS: KLEs college of Business Administration 23

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In DMU the dairy engineering handles the following:

REFRIGERATION: This is done to maintain the initial quality and freshness of the milk. It stops or limits the bacterial growth and prevents changes in the constituents of milk for processing. In DMU there are advance machines for the purpose of refrigeration. These machines help in cooling the milk which avoids spoilage and helps in further processing of milk. BOILER: The milk is heat treated or pasteurized in DMU to kill any pathogenic microorganism that may be present without affecting its nutritional quality. It kills germs and helps in storing the milk for long hours. These are advanced machines which helps in the process of boiling the milk .This helps in increasing the shelf-life of milk. ELECTRICAL: There is a separate electrical room which handles the operation and maintenance of the machines.

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DHARWAD MILK UNION (A unit of KMF)

FINANCE

FINANCE DEPARTMENT: DEFINITION: finance is the process of channeling funds from savers to users in the form of credit, loans or invested capital through agencies including commercial bank, Savings and loan associations and such non bank organization as credit unions and investment companies. MEANING: Finance is the science of funds management. The general areas of finance are business finance, personal finance and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, risk and how they are interrelated. It also deals with how money is spent and budgeted. Finance works most basically through individual and business organizations. KLEs college of Business Administration 25

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DEPARTMENT STRUCTURE:

Deputy Manager

Assistant Manager

Assistant Accountant Officer

Assistant Account

DUTIES AND RESPONSIBILITES OF DEPUTY MANAGER: Overall control of finance and accounts in respect of all units. Budgeting, capital and revenue, preparation and getting approval of Board. Monitoring the audit of accounts periodically and settlement of objections.

DUTIES AND RESPONSIBILITES OF ACCOUNT OFFICER: Prepare profit and loss statements and monthly closing and cost accounting reports. Establish, maintain and coordinate the implementation of accounting and accounting procedures.

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Monitor and review accounting and related system reports for accuracy and completeness. Prepare and renew budget, revenue, expense, payroll entries, invoices and other accounting documents. Interact with internal and external auditors in competing audits.

FUNCTIONS OF FINANCE DEPARTMENT:


Preparation of budget, appropriation of account, re- appropriations, surrenders and savings. Control of expenditure. To show the all account details of the company whenever higher officer will auditing. Compilation of codes, rules and procedures concerning financial transactions and having bearing on state finance and their implementation.

FINANCE AND ACCOUNTING:


Finance department is one of the important departments of DMU, which helps in smooth functioning of business as it maintains an essay to the availability of capital, cash flow and financial stability. The accounting period of DMU is from 1st April of every year to 31st march of next year. The financial statements, the balance sheet, P&L a/c of the previous year are prepared before august 31st. Bill of the society is remitted weekly through KCC and other rural banks. Daily report of the agent is submitted to the marketing department. The liabilities of the previous KLEs college of Business Administration 27

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year are cleared within June of the coming financial year. A monthly P&L a/c, receipts and payments account are prepared and submitted to the board of directors for making classification in planning and taking corrective steps in case of failure to attain objective. The department deals with the double entry method of booking, some of the books maintained by this department are cashbook, journal, ledger etc.

Purchase Department It is a sub-department, which comes under Finance Department. The main work of this department is to purchase various materials required by different department. After ascertaining the stock position by stores department and indent is sent by different department duly approved by the managing director. This department act to purchase materials. It also maintain records of all the suppliers calls for tenders, quotations e.t.c.

DEPARTMENT STRUCTURE

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Purchase Officer

Purchase Superintendent

Assistant purchase Officer

Helpers

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ADMINISTRATION /PERSONNEL

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ADMINISTRATION /PERSONNEL DEPARTMENT: DEFINITION: The act or process of administering, especially the management of a Govt or large institution. MEANING: Administration deals with gathering, processing, and communicating information. Practically, everybody working for an organization participates in the administrative activities. The goal of administration is to ensure smooth running of the organization process by coordinating people, participating in the processes and providing them information needed for completing their assignments. SUB DEPARTMENT: PERSONNEL MAMAGEMENT DEFINITION: The part management that is concerned with people and their relationships at work MEANING: Personnel management is the responsibility of all those who manage

people, as well as a description of the work of specialists. Personnel managers advise on formulate and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations and health and safety.

DUTIES AND RESPONSIBILITIES OF CLERKS: Provides prompt, efficient and friendly customer service. Answers the telephone promptly when called upon and provides friendly service to the customer who calls. checks invoice against delivered product when asked. Reports on work when scheduled and on time.

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FUNCTIONS OF ADMINISTRATION/PERSONNEL DEPARTMENT: Direct, supervise, plan and control the body. Provides support and services for the activities of the board of directives. To create appropriate condition for efficient of other departments. To look after recruitment process. To maintain shift timings. Maintenance of service records.

PROCESS: In DMU the administration department controls overall function of the organization. The organization consists of the following three levels: The managing level which includes managing director, deputy manager and assistance manager. Supervisory level which includes the technical officers and supervisor. Worker level which includes helpers.

THE DEPARTMENT HANDLES VARIOUS AREAS LIKE: CANTEEN: there is a canteen in the premises which provides lunch, tea etc .The Canteen is handled by the canteen in charge. TIME OFFICE: This department records the working hours of the employees. The time machine shows the entry and exit time of each employee. Each employee is given a punch card, whenever an employee enters the premises has to punch the card on the time machine and do the same before leaving the premises. Based on this attendance, the canteen bills are charged, wages are fixed ad deduction are made. 32

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STAFFING: Employees

working in

DMU. Each employees

re placed in the

department as per their specializations. RECRUTIMENT AND SELECTION: Due to registration, termination, retirement and transfers, the need for selection and recruitment arises. The HR department arranges for the recruitment. TRAINING: Most of the training is given to the employees here are on- the job training and off-the job training. If any new technology has been introduced outside, they are sent for training which is then implemented within their organization. There are various training programmes such as procurement and technical input training (NDDB), clean milk production training, maintenance of record and auditing etc. SALARIES: The salary is based on the Govt pay and also based on the post of an employee in the organization. OTHER BENEFITS: Free facilities like food, electricity and stay quarters are provided to the security department. Festival advance, canteen subsidy, medical allowance are also provided to the employees of the organization. SEEURITY:- Dharwad Milk occupies 25 acres of land the whole premise is been guarded by the security personnel. The security people work in three Shifts. All the Vehicles are checked before entering the premise. The department also maintains separate register like Attendance register e.t.c

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DEPARTMENT STRUCTURE

Deputy Manager

Administration Superdent administration Canteen

Clerks computer Attainders

Cooks

Helpers

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PROCUREMENT

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PROCUREMENT AND INPUT DEPARTMENT: DEFINITION OF PROCUREMENT: The action or process of acquiring or obtaining material, property or services at the operational level, for e.g., purchasing, contracting and negotiating directly with the source of supply. MEANING OF PROCUREMENT: Procurement is the acquisition of goods, works and services from both third parties and from in- house providers. The process spans the whole life cycle from identification of need through to the end of a service contract or the end of the useful life of an asset. DUTIES AND RESPONSIBILITES OF MANAGER OF PROCUREMENT AND INPUT: Establishing and maintaining the relationships. Coordinating and executing supplier assessments and performance review sessions. To ensure co-ordination with other departments. Keeping pace with the latest updates of the products. Lead improvement and resolution project related to performance. Establish long term relationship with suppliers. DUTIES AND RESPONSIBILITIES OF DEPUTY MANAGER VETERINARY (P & I) He should make available the right veterinary doctors. To provide emergency services. To provide first aid, vaccination, proper fodder. Keeping pace with the latest updates of the products. Lead improvement and resolution project related to performance. KLEs college of Business Administration 36

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Establish long term relationships with suppliers.

Department structure

Manager

Procurement wing

Technical Input Wing

Deputy Manager

Deputy Manager

Veterinary Officer

Assistant Manager

Clerks Assistant Manager

Computer Operator and Assistant

Clerk

Clerk

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DHARWAD MILK UNION (A unit of KMF)

FUNCTIONS OF THE DEPARTMENT: To organize, supervise and operate village dairy co-operative societies. To procure more milk from village societies. To provide veterinary services to keep up the good health of the cattle through regular health camp. To provide emergency services round the clock. To provide first aid, vaccination, infertility camp, fodders To facilitate training programs regarding management of cattle. To ensure proper and sufficient supply of fodder to the cattle.

PROCESS: The union carries on procurement by settling up co-operative societies at villages level. Later milk is collected in the chilling center. Milk collected from the milk center, is first tested. The quality and quantity of milk is brought and checked by a supervisor. Procurement is done twice a day and payment is made on the basis of percentage of the content and SNF in the milk. After the milk is sent to union else chilling center, which ever is the nearest. At the chilling center, milk is chilled up to 4 degree Celsius. Later this milk is sent to union in insulated tankers for further processing. The main function of this department is to procure milk from different areas throughout the year. The department also provides facilities that help in enhancing more productivity. It is also called as the input department because it also handles the veterinary facilities. It provides the nutritious food to the cattle. It provides cattle food for cattle to get quality milk.

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DHARWAD MILK UNION (A unit of KMF)

MARKETING

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DHARWAD MILK UNION (A unit of KMF)

MARKETING DEPARTMENT:
DEFINITION: Marketing is defined by the American Marketing association (AMA) as the activity , set of institutions and process for creating , communicating , delivering and exchanging offerings that value for customers , clients , partners and society at large. MEANING: It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from Customers in return. Marketing is used to create the customer, to keep he customer and satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. DUTIES AND RESPONSIBILITIES OF MANAGER OF MARKETING DEVELOPMENT: Monitoring sale of milk cards, distribution of milk. Monitoring sale of products in metro and Upcountry. Sales account reconciliation and dues collection. Handling customer complaints. Market supervision.

DUTIES

AND

RESPONSIBILITIES

OF

MARKETING

OFFICER

OF

MARKETING DEPARTMENT: Set goals for market share and growth. Make decisions regarding products such as choosing labels or packing. Work on developing new products. Manage distribution channels such as shops and wholesales. KLEs college of Business Administration 40

DHARWAD MILK UNION (A unit of KMF)


Make decisions regarding the distribution of the products. Develop plans for advertising, sales promotion, public relation, person selling and sales management.

FUNCTIONS OF MARKETING DEPARTMENT: Issuing in track receiving application for opening new parlors and agencies. Keeping in track of the timing of vehicles and timely supply of milk. Collection of cash from agents and depositing the same to the milk. Finding new areas where there is demand for milk. Attending complaints from the agents. Meeting agents to solve their problem.

PROCESS: The marketing department is the nearest of any organization. In todays highly complex and competitive world, marketing is the tool, which has to be derived properly to sell the product. Marketing is the more of a complex job and it requires a great deal of the knowledge about the market then its competitors. The marketing management requires planning, analyzing, implementing and controlling of programmes designing to create, build and maintain beneficial exchange with target buyers for the purpose of achieving the organization objectives. DMU has developed good customer relationship. It has placed the image of its product in the minds of its customers. It has done so by various promotions through Quality Awareness programmes, Social awareness programmes Newspapers KLEs college of Business Administration 41

DHARWAD MILK UNION (A unit of KMF)


Festival greetings TV advertisements Advertisements on internets Meetings Free samples Public gatherings Pamphlets.

The DMU has various types of business which help them reach their customers. These businesses are setup in different areas to reach the various customers scattered geographically. The types of business are: Agency Transporter cum distributor (TCD) Milk parlor. All time milk center (ATM) Day counters.

The DMU satisfies its customers by providing quality milk. It responses quickly to the customer problems and they look forward to improving their quality and take care of the customer problems.

Department structure

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DHARWAD MILK UNION (A unit of KMF)

Marketing Manager

Deputy Manager

Assistant Manager

Marketing Officer

Marketing Superintendent

Marketing Accountants

Marketing Supervisor

Marketing Clerks

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DHARWAD MILK UNION (A unit of KMF)

QUALITY CONTROL

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QUALITY CONTROL DEPARTMENT: DEFINITION: a system ensuring the maintenance of proper standards in manufactured goods, especially by periodic random inspection of the product. MEANING: quality control is a process employed to ensure a certain level of quality. The basic goal of quality control is to ensure that the products, services or processes provided meet specific requirements and are dependable, satisfactory and fiscally sound. DUTIES AND RESPONSIBILITES OF LAB TECHNICIAN: The lab technician is responsible for confirming the accuracy of test results of milk received from the procurement department. Checking product samples for bacteria contents from the raw milk to the finished products like pasteurized milk, butter, etc. PROCESS: Milk can be a potential carrier of disease producing organisms. There can be every possibility of getting dreadful diseases like diarrhea, anthrax, typhoid etc, if milk is brought from sick animals and mixed with contaminated water and supplied through open containers. In DMU, the quality is taken care of. They look towards providing the right kind of quality to its customers. For this purpose the milk is processed through machines under the observation of quality department. The department tests the milk thrice: The first test is done after receiving the milk from the chilling center. The next is before standardization. The third test is done before packing

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DHARWAD MILK UNION (A unit of KMF)

THERE ARE VARIOUS TESTS DONE IN THIS INDUSTRY SUCH AS: Clot on boiling test is done to test the bacteria content in the milk. Acidity test is done to test the extent of acidity. Alcohol test is done to check the heat of stability of milk. The density or the richness of milk is tested using a device called Lactometer. The percentage of FAT & SNF is determined through FAT & SNF tests,

To protect customers from assurance, adulteration and short weight, the Govt has enacted laws such as Food adulteration control Act, Weight and Measures act, customers protection Act etc. DMU has provided signs of reliability for their product: Milk supplied by dairies are registered under milk and milk products order(MMPO act) Look for MMPO license number on milk packet. Milk supplied by Co-operatives is recognized by national dairy development board (NDDB) bearing the national Co-operative Mnemonic symbol, a sign of freshness. The milk grade, quality and procurement of milk, all these decisions are taken by the board.

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DHARWAD MILK UNION (A unit of KMF)

SECURITY

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SECURITY
DEFINITION: It is degree of protection against danger, loss and criminals. MEANING: it is the protection of a person, property or organization from an attack. It is a department responsible for the security of the institutions property and workers. DUTIES AND RESPONSIBILITIES OF SECURITY OFFICER: Loading and unloading of milk and milk products. The whole premises of DMU are taken care by the security department. All the vehicles are checked entering that premises. PROCESS: The security department takes care of entire premises of DMU. As soon as the milk s brought they check the vehicles and then milk is taken for testing and then processing. The transportation and marketing department are linked to security department, without which is impossible.

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DHARWAD MILK UNION (A unit of KMF)

RATIO ANALYSIS

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RATIO ANALYSIS
DEFINITION:- It is an Numerical or an Arithmetical relationship between the two figures. E.g.- If 4000 is divided by 10000 can be Expressed as 2:5 or 0.4. MEANING:The method employed to understand, interpret and to make informed

decisions on the basis of the accounting data. ALL THE ACCOUNTING RATIOS HAVE BEEN BROADLY CLASSIFIED INTO THE FOLLOWING CATEGORIES: Profitability ratios Coverage ratios Turnover ratios Financial ratios Leverage ratios ADVANTAGES OF RATIO ANALYSIS Accounting ratios reveal the financial position of a concern. Accounting ratios help to have an Idea of the working of a concern. They are use for purpose of forecasting. The ratios are used to identify the account balances to which detailed audit procedures are required LIMITATIONS OF THE RATIO ANALYSIS If the ratios are based on incorrect accounting data, the results obtained will be false. Changes in price levels make the comparison for various years difficult. The ratios have no relevance if they are worked from insignificant and unrelated figures.

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In order to calculate ratios, different companies and analysis may assign different meanings. Methodology of study: Methodology has a great significance in research work the principles, procedures, process formulated in order to find a solution to the problem in question. Collection of relevant, analysis conclusion and recommendation are the set of interrelated activities that the methodology covers. The data collected in two ways, which are detailed below: Primary data Secondary data Primary data The method used in collection of primary data. Unstructured interview were conducted with the finance manager, HR manager and other department managers of the Dharwad Milk Union. Secondary data The secondary data was collected from internal source like accounting records, annual reports, and department manuals, company manuals and website, which related to the company. PROFITABILITY RATIOS

PROFITABILITY RATIOS:-

Profitability ratio is the over all measure of the

companies with regard to the efficient and effective utilization of resources at their command. It indicates the effectiveness of the decisions taken by the management from time to time. 1).GROSS PROFIT RATIO: This informs us the gross margin on trading. The following formula is applied for calculation. Gross profit ratio= Gross profit Net sales KLEs college of Business Administration 51 * 100

DHARWAD MILK UNION (A unit of KMF)

Year 2007-2008 2008-2009 2009-2010

Gross profit 7,19,76,931.94 11,29,22,879.38 14,19,61,925.51

Net sales 51,19,17,606.31 60,79,62,383.97 73,76,99,820.07

Gross profit ratio (%) 14.06% 18.57% 19.24%

G s p fitr t (% ro s ro a io )
20.00% 15.00% 10.00% 5.00% 0.00% 2007-2008 2008-2009 2009-2010 G sprofit ra (% ros tio )

Interpretation:
From the above graph it can be analyzed that gross profit ratio. The all Ratios are in increasing trend i.e. during the year 2007-2008 14.06%, during the year 2008-2009 18.57%, during the year 2009-2010 19.24%. So we conclude Organizations economic condition is good. 2). NET PROFIT RATIO: This ratio explains per rupee profit generating capacity of sales. This ratio is very useful to the proprietor and the prospective investors because it explains the overall profitability of the concern. This is the ratio of net profit after tax to the net sales. The following formula is applicable for calculation is Net profit Ratio = Net profit after tax * 100

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Net sales

Year 2007-2008 2008-2009 2009-2010

Net profit after tax 2,03,66,215.62 93,44,962.69 2,33,90,681.60

Net sales 51,18,17,606.31 60,79,62,393.67 73,76,99,820.07

Net profit Ratio (%) 3.98% 1.54% 3.17%

Netprofit Ratio(% )
4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2007-2008 2008-2009 2009-2010

Net profit Ratio(% )

Interpretation:
.
From the above table, it can be analyzed that net profit after taxes and net sales have shown from 2007-2008 i.e. 3.98%, and net profit during 20082009 is decreased i.e. 1.54% and in 2009-2010 the net profit is being increased i.e.3.17%. the net profit is being increased in 2010 & so we can conclude that

the organization is being improve 3). Operating ratio: The ratio indicates the proportion that the cost of sales bears to net sales. The following formula is applied for calculation. Operating ratio=Cost of goods sold + Operating expenses * 100 Net sales

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DHARWAD MILK UNION (A unit of KMF)

Year 20072008 20082009 20092010

COGS 43,98,40,674.37 49,50,39,504.29 59,57,37,894.56

Operating expenses 9,23,73,866.56 11,02,53,294.21 12,70,79,314.70

Net sales 51,18,17,606.31 60,79,62,383.67 73,76,99,820.07

Operating ratio (%) 103.98% 99.56% 97.98%

Operatingratio (% )
104.00% 102.00% 100.00% 98.00% 96.00% 94.00% 2007-2008 2008-2009 2009-2010 Operatingratio (% )

Interpretation: From the above graph it can be analyzed that the operating ratio is in the decreasing trend i.e. during the year 2007-2008 103.98%, 2008-2009 99.56%, 2009-2010 97.98%. The cost has been reduced year to year, it shows a forward trend. 4). Operating profit ratio: The ratio establishes the relation between the operating profit and the sales. The ratio is also known as EBIDTA it stands for Earnings before

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DHARWAD MILK UNION (A unit of KMF)


Interest, Depreciation, Tax and Amortisation. The following formula is applied for calculation.

Operating profit ratio=Gross profit Operating expenses * 100 Net sales OR Operating profit ratio = 100 Operating ratio 100 Operating ratio 100 - 103.98% 100 - 99.56% 100 97.98% Operating profit ratio (%) -3.98% 0.44% 2.02%

Year 2007-2008 2008-2009 2009-2010

Operatingprofitratio (% )
3.00% 2.00% 1.00% 0.00% -1.00% 2007-2008 2008-2009 2009-2010 -2.00% -3.00% -4.00% Operatingprofit ratio (% )

Interpretation:

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DHARWAD MILK UNION (A unit of KMF)


From the above graph it can be analyzed that the operating profit ratio is in increasing year to year. In the year 2007-2008 operating profit ratio is -3.98%, in the year 20082009 operating profit ratio is 0.44%, 2009-2010 operating profit ratio is 2.02%. So we can conclude that the organization is in the strong position.

5).EXPENSES RATIO:- This ratio is calculated to ascertain the relationship that exists between the operating expenses and the volume of sales. The following are the different expenses ratios. 1. Administrative expenses ratio 2. Selling & distribution expenses ratio a). Administrative Expenses Ratio= Administrative expenses * 100 Net sales Administrative Year 2007-2008 2008-2009 2009-2010 expenses 67,67,612.41 1,37,34,829.60 1,74,59,745.59 51,18,17,606.31 60,79,62,393.67 73,76,99,820.07 Net sales Administrative expenses ratio (%) 1.32 2.25 2.36

Adm inistrativeexpensesratio (% )
2.5 2 1.5 1 0.5 0 2007-2008 2008-2009 2009-2010 Adm inistrative expenses ratio (% )

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b). Selling & distribution expenses ratio = Selling & distribution expenses *100 Net sales

Selling Year 2007-2008 2008-2009 2009-2010 distribution expenses 2,08,33,899.91 2,56,47,390.18 3,26,60,685.33

& Net sales 51,18,17,606.31 60,79,62,393.67 73,76,99,820.07

Selling distribution expenses ratio(%) 4.07 4.21 4.42

&

S elling& distributionexpenses ratio(% )


4.5 4.4 4.3 4.2 4.1 4 3.9 3.8 2007-2008 2008-2009 2009-2010

Selling& distribution expensesratio(% )

6). Return on total assets ratio : This ratio is calculated to measure the profit after tax against to ascertain whether the assets are being utilised property in the business or not. The following formula is applied for the calculation Return on total assets ratio = Net profit after tax * 100 Total assets Net profit after tax 2,03,66,215..62 93,44,962.69 Total assets 24,45,60,618.74 22,16,99,915.71 Return on total

Year 2007-2008 2008-2009

assets ratio (%) 8.32 4.25 57

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DHARWAD MILK UNION (A unit of KMF)


2009-2010 2,33,90,681.60 24,26,42,783.03 9.63

Returnon total assetsratio (% )


10 8 6 4 2 0 2007-2008 2008-2009 2009-2010 Return on total assets ratio (% )

Interpretation:
From the above graph it can be analyzed that the Return on Total Assets ratio in the year 2007-2008 Return on Total Assets ratio is 8.32%, in the year 2008-2009 Return on Total Assets ratio is decreased 4.25%, but during 2009-2010 Return on Total Assets ratio is 9.63%. So we can conclude that the organization is being improved.

TURN OVER RATIOS: TURN OVER RATIOS: - The turn over ratio is also known as performance ratio or activity ratios. These ratios are used to judge as to how well the facilities at the disposal of the concern are being used to measure the effectiveness with which a concern uses the resources at its disposal. In short these ratios will indicate the position and effectiveness of usage of assets.

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DHARWAD MILK UNION (A unit of KMF)

1). CAPITAL TURNOVER RATIO:- This ratio shows the efficiency of capital employed by the concern in its business by computing the number of times capital employed is turnaround in a stated period. The following formula is applied Capital Turnover ratio = Net Sales Capital employed

YEAR 2007-2008 2008-2009 2009-2010

Net Sales 51,18,17,606.31 60,79,62,383.67 73,76,99,820.07

Capital Employed 10,23,64,616.29 8,12,57,362.71 16,35,02,294.12

Capital ratio 4.99 7.48 4.51

Turnover

Capital T urnover ratio


8 7 6 5 4 3 2 1 0 2007-2008 2008-2009 2009-2010

Capital Turnover ratio

Interpretation:
From the above table we can see that the Capital Turnover ratio for the year 2007-2008

the ratio is 4.99, and increased to 7.48 in the year 2008-2009, but again it has been decreased i.e. 4.51 in the year 2009-2010. The lower Capital turn over ratio indicates that the sufficient sales have being not made by the concern.

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2) FIXED ASSETS TURN OVER RATIO :- This ratio measures the efficiency of use of the fixed assets. The efficient use of the assets of the concern generates greater sales per rupee invested in all the assets of the concern. Hence the management should strive for using the total resources at the optimum level to achieve the greater return on the investment (i.e. ROI). The following formula is applicable Fixed Assets Turn Over Ratio = Net sales Net fixed assets Fixed Assets Turn YEAR 2007-2008 2008-2009 2009-2010 Net sales 51,18,17,606.31 60,79,62,383.67 73,76,99,820.07 Net fixed assets 9,90,99,149.12 9,88,89,970.51 9,33,35,431.84 Over Ratio 5.16 6.14 7.90

F e A s t T rnO e R tio ix d s e s u v r a
8 7 6 5 4 3 2 1 0 2007-2008 2008-2009 2009-2010

FixedAss T Over ets urn R tio a

Interpretation:
From the above table, it can be analyzed that net sales and net fixed assets showing a positive ratio of fixed assets year by year i.e. in the year 2007-2008 the ratio is 5.16, and

increased to 6.14 & in the year 2008-2009 again it has been increased 7.90 in the year 2009-2010. The fixed assets are effectively used.

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3) TOTAL ASSETS TURN OVER RATIO:- Total assets turnover ratio shows the number of times the total assets are turnaround during a stated period. A higher ratio is the indicator of overtrading of totalassets of a concern while a lower ratio reveals idle capacity. An ideal ratio would be around 1.33 times. The following formula is applied Total Assets turn over ratio = Net Sales Total Assets Net Sales YEAR 2007-2008 2008-2009 2009-2010 51,18,17,606.31 60,79,62,383.67 73,76,99,820.07 24,45,60,618.74 22,16,99,915.71 24,26,42,783.03 Total Assets Total Assets turn over ratio (%) 2.09 2.74 3.04

T otal Assetsturn over ratio (% )


3.5 3 2.5 2 1.5 1 0.5 0 2007-2008 2008-2009 2009-2010 Total Assets turn over ratio (% )

Interpretation:
From the above table i.e. in the year 2007-2008 the ratio is 2.09, and increased to 2.74 in

the year 2008-2009 again it has been increased 3.04 in the year 2009-2010. The increase in the ratio indicates over trading of the total assets

Profitability ratios
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YEAR 1 2 3 4 5 5c 5d Gross profit ratio

2007-2008

2008-2009 18.57%

2009-2010 19.24% 3.17% 97.98% 2.02%

14.06% Net profit Ratio Operating ratio Operating profit ratio Expenses Ratio Administrative expenses ratio Selling distribution expenses ratio 6 Return on total 8.32% assets ratio 4.25% 9.63% & 4.07% 4.21% 4.42% 1.32% 2.25% 2.36% 3.98% 103.98% -3.98% 1.54% 99.56% 0.44%

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Turn Over Ratios

YEAR 1 2 Fixed Turn 3 Ratio Total Capital Turnover ratio

2007-2008

2008-2009

2009-2010

4.99

7.48 6.14

4.51 7.90

Assets 5.16 Over Assets 2.09

turn over ratio

2.74

3.04

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ANNEXURE

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DMU PROFIT & LOSS A/C

Particulars
Opening Stock. Stock-Milk. Stock-Milk Products. Stock-Others. Stock-P/I.

1-Apr-2007 to 31-Mar-2008
2,41,59,120.74 16,89,323.21 57,96,216.50 1,26,39,734.67 40,33,846.36

Particulars
Sales Accounts Sale Cattle Feed. Sale of Milk. Sale of Milk Products. Sale of P & I Sale-Other Sales.

1-Apr-2007 to 31-Mar-2008
51,18,17,606.31 5,88,82,694.00 34,79,10,803.40 9,29,29,637.57 83,43,228.82 37,51,242.52

Purchase Accounts. Purchase of Feed. Purchase of Milk. Purchase of Milk products. Purchase of Others. Purchase of- P/I. Direct-Expenses P & Wing Expenses. Production & Manuf. Expenses. Gross Profit C/o.

38,30,26,045.84 5,44,97,594.00 28,80,34,262.92 14,46,403.51 2,93,11,822.10 97,35,963.31 6,27,99,630.93 93,05,157.35 5,34,94,473.58 7,19,76,931.94 Closing Stock Stock-Milk. Stock-Milk Products. Stock-Others Stock-P/I. 24,29,989.47 1,01,80,180.46 1,39,06,446.75 36,27,506.46 3,01,44,123.14

54,19,61,729.45
Indirect Expenses Administration Expenses. Interest and Bank Expenses. Selling & Distribution Expenses. Staff Expenses. Depreciation A/c. EXP. Relates to previous year Net Profit. Grand total 9,27,75,211.38 67,47,412.41 4,14,394.82 2,08,33,899.91 5,98,30,286.24 49,42,068.00 (-)13,050.00 2,03,66,215.62 11,31,41,427.00 Grand Total Gross B/F. Indirect Incomes Profit

54,19,61,729.45
7,19,76,931.94 4,11,64,495.06 4,11,64,495.06

Other Income.

11,31,41,427.00

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DMU BALANCE SHEET

Liabilities
Capital Account Reserves & Surplus. Government Loan. Share Capital-A Class. Share Capital-B Class. Share Suspence Loans (Liability) Secured loans Current Liabilities. Grants O.S.L Other Liabilities Salary Recoveries. Security Deposit A/c Unpaid Salary / Wages A/c. Duties & Taxes. Sundry Creditors AMRUT YOJANE AMRUT YOJANE DCS CONTRIBUTION NDDB LOAN SUSPENCE

1-Apr-2007 to 31-Mar-2008
10,23,64,616.29 5,87,69,799.33 9,60,480.00 2,23,18,800.00 2,00,00,000.00 3,15,536.096 8,84,59,946.00 8,84,59,946.00 53,73,60,596.45 80,95,709.00 48,52,589.60 78,31,523.37 8,33,382.18 88,49,551.82 14,856.40 78,993.03 7,94,4451.05 1,24,60,000.00 36,75,000.00 (-)9,00,000.00

Assets
Fixed Assets Fixed Asset

1-Apr-2007 to 31-Mar-2008
10,41,41,217.12 10,41,41,217.12

Investments Investments 45,35,600.00

45,35,600.00

Current Assets Closing Stock Deposits(Asset) Loans & Advances (Asset) Sundry Debtors Cash-in-Hand Bank Accounts 30,14,41,230.14 50,30,181.50 1,22,31,800.96 1,72,44,418.14 61,4,518.88 2,09,64,421.78

8,62,29,464.40

Profit A/c

&

Loss 4,97,54,337.22 7,01,20,552.84 (-)203,66,215.62

Opening Balance Current Period

Grand total

24,45,60,618.74

Grand Total

24,45,60,618.74

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DMU PROFIT & LOSS A/C

Particulars
Opening Stock. Stock-Milk. Stock-Milk Products. Stock-Others. Stock-P/I.

1-Apr-2008 to 31-Mar-2009
3,01,44,123.14 24,29,989.47 1,01,80,180.46 1,39,06,446.75 36,27,506.46

Particulars
Sales Accounts Sale Cattle Feed. Sale of Milk. Sale of Milk Products. Sale of P & I Sale-Other Sales. Conversion Charges.

1-Apr-2008 to 31-Mar-2009
60,79,62,383.67 6,22,69,593.00 41,09,60,848.98 8,68,73,775.50 82,41,603.80 49,50,542.00 3,22,68,416.50 10,23,493.69 4,88,709.50 9,41,400.70

Purchase Accounts. Purchase of Feed. Purchase of Milk. Purchase of Milk products. Purchase of Others. Purchase of- P/I. Direct-Expenses P & Wing Expenses. Production & Manuf. Expenses. Gross Profit C/o.

42,55,91,913.59 5,76,91,425.00 31,77,98,676.45 56,53,438.02 3,03,78,288.65 1,38,70,085.47 6,65,88,590.56 1,09,64,907.37 5,56,23,683.19 11,29,22,879.38

Local sales Levy Sale of Canteen Coupons. Storage Charges

Closing Stock Stock-Milk. Stock-Milk Products. Stock-Others Stock-P/I. 35,71,249.59 29,99,884.67 1,32,43,061.00 74,70,907.74

2,72,85,123.00

63,52,47,506.67
Indirect Expenses Administration Expenses. Interest and Bank Expenses. Selling & Distribution Expenses. Staff Expenses. Depreciation A/c. Net Profit. 11,02,53,294.21 1,37,34,829.60 (-)4,10,706.76 2,56,47,390.18 6,61,52,818.30 51,28,962.89 93,44,962.69 Gross B/F. Indirect Incomes Profit

63,52,47,506.67
11,29,22,879.38 66,75,377.52 66,75,377.52

Other Income.

Grand total 11,95,98,256.90

Grand Total 11,95,98,256.90

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BALANCE SHEET

DMU
Liabilities
Capital Account Reserves & Surplus. Government Loan. Share Capital-A Class. Share Capital-B Class. Share Suspence 3,50,31,382.50 9,60,480.00 2,48,79,800.00 2,00,00,000.00 3,85,700.21 Investments Investments 2,24,05,306.00 2,24,05,306.00

1-Apr-2008 to 31-Mar-2009
8,12,57,362.71

Assets
Fixed Assets Fixed Asset

1-Apr-2008 to 31-Mar-2009
10,40,18,933.40 10,40,18,933.40

Loans (Liability) Secured loans Current Liabilities. Grants O.S.L Other Liabilities Salary Recoveries. Security Deposit A/c Unpaid Salary / Wages A/c. Duties & Taxes. Sundry Creditors AMRUT YOJANE AMRUT YOJANE DCS CONTRIBUTION NDDB LOAN SUSPENSE 1,89,97,285.00 5,16,000.00 1,34,10,756.81 1,58,137.58 95,10,418.12 16,021.00 2,24,465.88 1,08,12,931.00 31,28,076.00. 14,84,800.00 (-)1,79,570.00 8,23,63,231.00

8,23,63,231.00 Current Assets 5,80,79,322.00 Closing Stock Deposits(Asset) Loans & Advances (Asset) Sundry Debtors Cash-in-Hand Bank Accounts 2,72,85,123.00 50,24,655.50 1,05,13,010.85 2,20,73,532.20 7,17,926.95 97,55,611.67 7,53,69,860.17

Profit A/c

&

Loss 1,99,05,816.14 4,97,39,737.83 (-)93,44,982.69 2,04,86,959.00

Opening Balance Current Period Less transfered

Grand total

24,26,42,783.03

Grand Total

24,26,42,783.03

PROFIT & LOSS A/C

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DHARWAD MILK UNION (A unit of KMF)

DMU
Particulars
Opening Stock. Stock-Milk. Stock-Milk Products. Stock-Others. Stock-P/I. 35,71,249.59 29,99,884.67 1,32,43,081.00 74,70,907.74

1-Apr-2009 to 31-Mar-2010
2,72,85,123.00

Particulars
Sales Accounts Sale Cattle Feed. Sale of Milk. Sale of Milk Products. Sale of P & I Sale-Other Sales. Conversion Charges.

1-Apr-2009 to 31-Mar-2010
73,76,99,820.07 6,63,68,557.00 51,54,32,361.00 8,84,99,438.01 1,84,49,396.21 56,68,604.25 3,92,04,555.60 17,49,483.50 4,72,680.50 18,54,744.00

Purchase Accounts. Purchase of Feed. Purchase of Milk. Purchase of Milk products. Purchase of Others. Purchase of- PA. Direct-Expenses P & Wing Expenses. Production & Manuf. Expenses. Gross Profit C/o.

51,56,87,484.37 6,25,05,810.00 39,18,65,516.89 94,95,952.00 3,54,96,024.97 1,63,24,180.51 7,39,59,039.06 1,86,71,918.90 5,52,87,120.16 14,19,61,925.51

Local sales Levy Sale of Canteen Coupons. Storage Charges

Closing Stock Stock-Milk. Stock-Milk Products. Stock-Others Stock-P/I. 30,93,977.00 44,50,673.00 91,27,954.99 45,21,146.88

2,11,93,751.87

75,88,93,571.94
Indirect Expenses Administration Expenses. Interest and Bank Expenses. Selling & Distribution Expenses. Staff Expenses. Depreciation A/c. Net Profit. 12,70,79,314.70 1,74,59,745.59 (-)1,34,840.43 3,26,60,685.33 7,22,30,771.25 48,62,952.96 2,33,90,681.60 Gross B/F. Indirect Incomes Profit

75,88,93,571.94
14,19,61,925.51 85,08,070.79 85,08,070.79

Other Income.

Grand total 15,04,69,996.30

Grand Total 15,04,69,996.30

BALANCE SHEET

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DHARWAD MILK UNION (A unit of KMF)

Liabilities
Capital Account Reserves & Surplus. Government Loan. Share Capital-A Class. Share Capital-B Class. Share Suspence Loans (Liability) Current Liabilities. Grants O.S.L Other Liabilities Salary Recoveries. Security Deposit A/c Unpaid Salary / Wages A/c. Duties & Taxes. Sundry Creditors AMRUT YOJANE AMRUT YOJANE DCS CONTRIBUTION

1-Apr-2009 to 31-Mar-2010
16,35,02,294.12 3,30,75,474.31 9,60,480.00 2,79,15,000.00 10,11,42,000.00 4,09,339.91

Assets
Fixed Assets Fixed Asset

1-Apr-2009 to 31-Mar-2010
9,81,98,384.80 9,81,98,384.80

Investments Investments 4,59,05,306.00

4,59,05,306.00

Current Assets 7,56,55,623.45 2,09,65,685.93 41,00,385.62 2,36,33,343.04 15,24,705.48 1,08,30,179.32 3,94,947.00 5,45,782.00 83,08,177.06 37,50,662.00 16,01,756.00 34,84,865.46 Closing Stock Deposits(Asset) Loans & Advances (Asset) Sundry Debtors Cash-in-Hand Bank Accounts 2,11,93,751.87 50,98,605.50 3,54,17,543.70 2,41,79,465.06 3,42,320.27 1,23,07,405.83

9,85,39,092.23

Profit & Loss A/c Opening Balance Current Period (-)1,99,05,816.14 2,33,90,681.60

Grand total

24,26,42,783.03

Grand Total

24,26,42,783.03

FINDINGS

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DHARWAD MILK UNION (A unit of KMF)

Gross profit of the concern is in increasing order i.e., 14.06% ,

18.57% & 19.24 %.

The net profit is in fluctuating order i.e, 3.98% and 1.54% & The Operating ratio is in decreasing order i.e, 103.98% and

3.17% .

99.56% & 97.98%.

The Operating profit ratio is in order fluctuating i.e., -3.98 % and

0.44% & 2.02% .

Return on total assets ratio is in fluctuating order i.e., 8.32% and The Expenses for the following years for the followings ratios are

4.25% & 9.63% .

as follows for Administrative Expenses 1.32%, 2.25%, 2.36%, and for the Selling & distribution expenses ratio the expenses for the following years are as follows 4.07% , 4.21% ,4.42%.

Capital Turnover ratio is in fluctuating order i.e 4.99, and 7.48 Fixed Assets Turn over Ratio is in increasing order i.e, 5.16, and Total Assets turn over ratio is in increasing order i.e, 2.09 and

& 4.51.

6.14, & 7.90.

2.74 & 3.04. In the year 2007-2008 there would be a net loss but because of the increase other incomes there was net profit.

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DHARWAD MILK UNION (A unit of KMF) SUGGESTIONS

In this changing environment, gross profit is expected to be more.

There for efforts should be made to improve sales and to control cost, so as to improve its gross profit.

As seen in the operating expenses ratio, there is increase in the

operating expenses, which means there is mismanagement of the expenses. Hence there is a need of better management of manufacturing, administering and selling expenses. The total assets turn over ratio are in increasing order so it indicates Dharwad Milk Union (DMU) should have to appoint skilled and the over trading of total assets.

qualified employees. It increases efficiency of the firm. .

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DHARWAD MILK UNION (A unit of KMF) CONCLUSION:


DMU is large-scale Industry situated in lakumanhalli Industrial area in Dharwad Functioning from 1986. All the department of the company performs well. The study of Ratio Analysis in DMU is satisfactory. Hence I conclude DMU is one of the best industry but there is mismanagement of expenses.

BIBILOGRAPHY
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Kmf guide explanation www.kmf.nandini.coop/html/unions-bangalore.htm dharwarnani@satyam.in Text books I.M. Pandey Financial Management. M.B. Kadkol Financial Accounting.

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